S. 5689 — RECLAIM Act

This section prohibits covered data centers from receiving any federal grants, loans, tax credits, deductions, or other financial assistance for development or operations. It imposes a 100 percent excise tax on prohibited state or local incentives received for covered data centers, defined as facilities with at least 100 megawatts contracted peak power demand where at least 50 percent of installed compute accelerators are AI accelerator chips for artificial intelligence training, fine-tuning, or inference (using the definition of artificial intelligence in 15 U.S.C. 9401).

This section provides that if any provision of the Act or its application to any person or circumstance is held unconstitutional, the remainder of the Act and its amendments, and their application to other persons or circumstances, remain in effect.